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Chile’s Solidarity Pillar: A Benchmark for Adjoining Zero Pillar with DC Schemes

Autor: Fajnzylber, Eduardo
Año: 2019
Resumen: In 2008, Chile introduced a New Solidarity Pillar (NSP) designed to eliminate the incidence of poverty among elderly adults by setting a floor at around forty percent of the minimum monthly income for the poorest sixty percent of the population. This paper describes the NSP’s main characteristics and the main results achieved during its first seven years of operations: coverage, fiscal cost, poverty reduction, and the system’s role in reducing the significant gender gap in pensions. Its effects on incentives to contribute are discussed, as well as the literature that has attempted to measure these effects. Finally, the main challenges facing the NSP and the implications for other countries under defined contribution pension schemes are summarized.

Fuente: Banco Mundial
Clasificación: Seguridad Social y Sistemas de Pensiones
Tipo de Publicación: Documentos de Trabajo
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Montenegro Public Finance Synthesis Report: Restoring Sustainability and Strengthening Efficiency of Public Finance

Autor: Grupo Banco Mundial
Año: 2019
Resumen: Benefiting from successful economic transformation after independence and the start of EU accession negotiations, economic activity in Montenegro has been solid, supporting the rise in incomes their convergence with the ones in the European Union. Inflation has been modest and kept in check. However, the import dependence of the growth model and the excessive reliance on the state to stimulate the economy have contributed to widening of external and internalimbalances as well as indebtedness. There have been recent efforts at fiscal tightening, but more needs to be done to address structural rigidities and boost the commitment to the objectives of economic policies. This is particularly the case with respect to the medium-term budget plans, public sector restructuring, pension and health reforms, improvements of market competition, and the labor market. Montenegro confronts today the need for further fiscal adjustment to turn the deficit into surplus and bring public debt below the Maastricht level. This would help creating the fiscal space for strengthening its convergence prospects with the EU and with the alignment with the rules in the eurozone, given the country’s use of euro as the local currency. Fiscal and structural policies in an economy without monetary policy levers are of paramount importance to protect stability and competitiveness. This Public Finance Synthesis Report is a summary of policy discussions over the last few years carried out under the various World Bank activities, including the Policy-Based Guarantee, the analytical work under the topic of Jobs and Growth and on pharmaceutical reform issues). While the Government has already taken major efforts to address some of the critical bottlenecks in the economy, this synthesis report summarizes and outlines pathways to further strengthen the sustainability, efficiency, and effectiveness of public finances in Montenegro.

Fuente: Banco Mundial
Clasificación: Seguridad Social y Sistemas de Pensiones
Tipo de Publicación: Informes
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Fiscal Incidence in Ukraine: A Commitment to Equity Analysis

Autor: Bornukova, Kateryna; Leshchenko, Nataliia; Matytsin, Mikhail
Año: 2019
Resumen: The paper employs the Commitment to Equity framework to present a first attempt at a comprehensive fiscal incidence analysis for Ukraine, encompassing the revenue and expenditures components of the fiscal system, including direct and indirect taxes, as well as direct, indirect, and in-kind transfers. The fiscal system in Ukraine has high redistribution effects, decreasing the Gini inequality index by 21 percentage points, and the official measure of poverty incidence by 27.6 percentage points (considering all fiscal interventions including in-kind transfers). As in many other countries in the region, pensions are the main contributor to the redistribution effect of fiscal policy. However, Ukraine stands out due to the relatively high equalizing effect of direct transfers. Fiscal policy in Ukraine is pro-poor, with the lowest income decile benefiting the most. Overall, 60 percent of the population of Ukraine are net recipients from the fiscal system, the main categories of recipients being households with two or more children, single-parent households, and retirees.

Fuente: Banco Mundial
Clasificación: Seguridad Social y Sistemas de Pensiones
Tipo de Publicación: Documentos de Trabajo
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NDC Schemes and Heterogeneity in Longevity: Proposals for Redesign

Autor: Alonso-García, Jennifer; Holzmann, Robert; Labit-Hardy, Heloise; Villegas, Andrés M.
Año: 2019
Resumen: A positive relationship between lifetime income and life expectancy leads to a redistribution mechanism when the average cohort life expectancy is applied for annuity calculation. Such a distortion puts into doubt the main features of the NDC (nonfinancial defined contribution) scheme and calls for alternative designs to compensate for the heterogeneity. This paper explores five key mechanisms of compensation: individualized annuities; individualized contribution rates; a two-tier contribution structure with socialized and individual rates; and two supplementary two-tier approaches to deal with the income distribution tails. Using unique American and British data, the analysis indicates that both individualized annuities and two-tier contribution schemes are feasible and effective and thus promising policy options. A de-pooling by gender will be required, however.

Fuente: Banco Mundial
Clasificación: Seguridad Social y Sistemas de Pensiones
Tipo de Publicación: Documentos de Trabajo
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Labor Market Participation and Postponed Retirement in Central and Eastern Europe

Autor: Gal, Robert I.; Radó, Márta
Año: 2019
Resumen: This paper shows that as the educational composition in the fifty-five to sixty-four year-old age bracket improved between the mid-1990s and the mid-2010s, the effective retirement age rose rapidly in the Central and Eastern European region. This increase was fast enough to keep life expectancies at the effective retirement age practically unchanged. In effect, the labor market absorbed all improvements in life expectancies in older working ages. The paper also shows that maintaining the current life expectancies at retirement over the next thirty years requires less effort in terms of further raising the effective retirement age than what the region achieved in this respect in the last fifteen years.

Fuente: Banco Mundial
Clasificación: Mercado Laboral
Tipo de Publicación: Documentos de Trabajo
Idioma:

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